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BitPay has launched a new Facebook app called that enables users to share and send bitcoins.

South African online retailer Takealot, which has raised more than $100m in funding, is now accepting bitcoin.

Wireless provider RingPlus is the first US-based telecom to offer digital currency support.

Wireless provider RingPlus is the first US-based telecom to offer digital currency support.

Wireless provider RingPlus is the first US-based telecom to offer digital currency support.

This morning the New York Department of Financial Services released a draft proposal of how they would regulate Bitcoin businesses.

Under the draft rules, all firms will have to learn the identities of their customers, will have to maintain their own secure Bitcoin reserve fund, and undergo strict security audits.

The more well-capitalized Bitcoin players, like SecondMarket's Barry Silbert and the Winklevoss twins, have embraced the proposal, saying it provides clarity for how they should be conducting their businesses. All three gave statements at DFS' hearings on the new licenses in January.

But other Bitcoin evangelists hate the draft policies. Ryan Selkis, who blogs about Bitcoin at The Two-Bit Idiot, told BI in an email the proposed requirements would bring onerous new compliance costs on smaller firms. "It's almost hard to believe that the NYSDFS sought to strike an appropriate balance with this initial proposal because these prescriptions seem neither measured or balanced," he said in an email. The rules would also hamper transaction liquidity, and contended that they restrict businesses from investing their earnings in virtual currencies. 

Others are concerned the rules will stamp out privacy and strangle innovation. Here's what Bryce Weiner, Director of Cryptoeconomy Engineering for the Blockchain Technology Group, told us in an email:

It has been well established by a Penn State University study from 2013 that the identities of individuals using cryptocurrencies are easily compromised through metadata analysis. The combination of that published metadata analysis and the proposed regulations would lead to effectively ending the privacy of cryptocurrencies and regulate the creation of any new currencies developed in the US, which would not only cost American jobs as development firms move to more welcoming countries, it would ultimately stifle innovation and protect bitcoin from competition.

In a blog post, Jerry Brito, a senior research fellow at George Mason's Mercatus center, said the rules are a good start, but that there is a considerable amount of ambiguity, especially over what types of firms require licenses, and that they seem to annul parts of virtual currencies' appeal.

... The ability to trade across borders, especially with those in developing countries who don’t have access to electronic payment systems, is one of Bitcoin’s greatest advantages and it could be seriously hampered by such a requirement.

The rationale for creating a new “BitLicense” specific to virtual currencies was to design something that took the special characteristics of virtual currencies into account (something existing money transmission rules didn’t do). I hope the rule can be modified so that it can come closer to that ideal.

There is now a 45-day comment period on the rules. We're sure DFS will be getting a few.

Join the conversation about this story »

This article is intended as an introduction to the concepts of bitcoin that might be of interest to those people that are retired. The reader is expected to have only basic internet web browsing and email knowledge.  The questions and answers are given in “layman” terms. What is Bitcoin ? Bitcoin is a new kind of payment and currency system. It’s a new way to pay for things with using pre-paid credits. It’s different from credit cards because it’s not based on debt. It’s the next generation of transferring money that replaces past inventions of using checking accounts and credit cards. It allows you to pay with cash-like money over the internet, even when they are standing next to you. With […]

The post Bitcoin Explained to the Retired Folks appeared first on Bitcoin Magazine.

The Openbaar Ministerie, a public prosecution service within the Dutch judiciary, can now confiscate bitcoins.

New York State has released a first draft of its much-anticipated plan to regulate bitcoin and other virtual currencies, and at first blush, they look like they were written for the 19th century banking industry, not the modern fast-changing world of crypto currencies.

The city of Pittsburgh has denied reports it is seeking to accept bitcoin for tax payments.

A little while back I reported on a fascinating project I had been following. I have continued to follow this project with interest. As the world’s first Bitcoin-powered pay-per-character publishing platform, Bitcoin Megaphone peaked my interest. Truly innovative and original ideas in the space can be difficult to come by, even with so much happening. Bitcoin Megaphone, the cutting-edge micro-publishing platform, has just unveiled its affiliate program. The program works by instantly paying affiliates 30% of the profits generated by referrals. Since Bitcoin Megaphone uses Coinbase as its merchant platform, the affiliate transactions happen off-blockchain and without fees. What is most fascinating, and only really possible because of Bitcoin itself, is that all that’s required to sign up for the […]

The post Bitcoin Megaphone and Anonymous Affiliates appeared first on Bitcoin Magazine.

The Vancouver-based group claims to be the first hospitality company to accept bitcoin in Canada.

Bitcoin price has broken the longterm rising trendline that has supported price on several occasions in the past few years. However, this trendline had been breached on previous occasions – each time prior to a strong rally. Archers, Nock Arrows! Despite the breach price has not entered freefall, instead making a gradual stairstep down from […]

The post Bitcoin Price – Will Lightning Strike the Same Place Twice? appeared first on CryptoCoinsNews.

Today, Ben Lawsky, Superintendent of the New York Department of Financial Services (NYDFS), revealed the first state level attempt to regulate digital currencies such as Bitcoin: a BitLicense. One particularly thorny point in the sides of many Bitcoiners is the fact that the NYDFS chooses to refer to Bitcoin as a “virtual currency” as opposed […]

The post Ben Lawsky And NYDFS Reveal Proposed BitLicense Regulations appeared first on CryptoCoinsNews.

Tensions have eased following the mining industry's summit, but we're still in an ASIC arms race, argues Jon Matonis.

New York state has released its long-awaited guidance for licensed bitcoin businesses.

The New York Department of Financial Services has released a draft for what the state's BitLicenses will look like, and they're going to change the face of Bitcoin commerce in the U.S..

The greatest change is that anyone using a New York-sanctioned Bitcoin service will no longer be anonymous. This was something Bitcoin's earliest users said was essential to the digital currency's appeal, but which DFS, as well as other lawmakers, expressed strong distaste for at hearings earlier this year.

Now, any business whose essential service is buying, selling, or processing Bitcoin will have to maintain records of their customers' names and addresses, and check them against the Treasury's list of bad actors.

They'll also have to maintain reserve Bitcoin assets equal to 100% of however much they are holding on behalf of customers, and get bonded-up "in such form and amount as is acceptable to DFS for the protection of the licensee’s customers." And they'll have to submit and publish a detailed consumer complaint policy that must include a provision allowing customers to pursue their complaint with DFS.

The draft proposal makes New York the first government entity to propose comprehensive Bitcoin regulations, and are likely to serve as a model for other states and even federal guidelines, given New York's role as the vanguard financial authority outside Washington — DFS Superintendent Ben Lawsky, for instance, was a critical player in the recent penalties delivered against BNP Paribas for violating sanctions.   

You won't need a license if you're a retailer accepting Bitcoin or other cryptocurrencies as a form of payment.

Here's the full text:

NY DFS RELEASES PROPOSED BITLICENSE REGULATORY FRAMEWORK FOR VIRTUAL CURRENCY FIRMS 

Framework Includes Consumer Protection, Anti-Money Laundering, and Cyber Security Rules for Virtual Currency Businesses 

Proposed Regulations Submitted for a 45-Day Notice and Comment Period to Solicit Public Feedback 

Benjamin M. Lawsky, Superintendent of Financial Services, today announced that the New York State Department of Financial Services (DFS) has issued for public comment a proposed “BitLicense” regulatory framework for New York virtual currency businesses. The proposed regulatory framework – which is the product of a nearly year-long DFS inquiry, including public hearings that the Department held in January 2014 – contains consumer protection, anti-money laundering compliance, and cyber security rules tailored for virtual currency firms.

Superintendent Lawsky said: “We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity – without stifling beneficial innovation. Setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets.” 

In accordance with the New York State Administrative Procedures Act (SAPA), the proposed DFS rules for virtual currency firms will be published in the New York State Register’s July 23, 2014 edition, which begins a 45-day public comment period. After that public comment period, the rules are subject to additional review and revision based on that public feedback before DFS finalizes them.

Additionally, DFS is today immediately publishing a copy of the regulations on the website Reddit. Earlier this year, Superintendent Lawsky hosted an “Ask Me Anything” forum on Reddit about DFS’ work on virtual currency regulation, which generated more than 1,200 public comments. Links to the proposed rules are also being tweeted out from the DFS Twitter handle (@NYDFS) and Superintendent Lawsky’s Twitter handle (@BenLawsky).

Superintendent Lawsky said: “We recognize that – as the first state to put forward specially tailored rules for virtual currency firms – continued public feedback will be an important part of finalizing this regulatory framework. We look forward to carefully and thoughtfully reviewing public comments on our proposal.”

The new DFS BitLicenses will be required for firms engaged in the following virtual currency businesses:

• Receiving or transmitting virtual currency on behalf of consumers;
• Securing, storing, or maintaining custody or control of such virtual currency on the behalf of customers;
• Performing retail conversion services, including the conversion or exchange of Fiat Currency or other value into Virtual Currency, the conversion or exchange of Virtual Currency into Fiat Currency or other value, or the conversion or exchange of one form of Virtual Currency into another form of Virtual Currency;
• Buying and selling Virtual Currency as a customer business (as distinct from personal use); or
• Controlling, administering, or issuing a Virtual Currency. (Note: This does not refer to virtual currency miners.)
  

The license is not required for merchants or consumers that utilize Virtual Currency solely for the purchase or sale of goods or services; or those firms chartered under the New York Banking Law to conduct exchange services and are approved by DFS to engage in Virtual Currency business activity. 

Key requirements for firms holding BitLicenses include:

• Safeguarding Consumer Assets. Each firm must hold Virtual Currency of the same type and amount as any Virtual Currency owed or obligated to a third party. Companies are also prohibited from selling, transferring, assigning, lending, pledging, or otherwise encumbering assets, including Virtual Currency, it stores on behalf of another person. Each licensee must also maintain a bond or trust account in United States dollars for the benefit of its customers in such form and amount as is acceptable to DFS for the protection of the licensee’s customers.
  
  
• Virtual Currency Receipts. Upon completion of any transaction, each firm shall provide to a customer a receipt containing the following information: (1) the name and contact information of the firm, including a telephone number established by the Licensee to answer questions and register complaints; (2) the type, value, date, and precise time of the transaction; (3) the fee charged; (4) the exchange rate, if applicable; (5) a statement of the liability of the Licensee for non-delivery or delayed delivery; (6) a statement of the refund policy of the Licensee.
  
  
• Consumer Complaint Policies. Each firm must establish and maintain written policies and procedures to resolve consumer complaints in a fair and timely manner. The company must also provide notice to consumers, in a clear and conspicuous manner, that consumers can bring complaints to DFS’s attention for further review and investigation.
  
  
• Consumer Disclosures. Companies must provide clear and concise disclosures to consumers about potential risks associated with virtual currencies, including the fact that: transactions in Virtual Currency are generally irreversible and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable; the volatility of the price of Virtual Currency relative to Fiat Currency may result in significant loss or tax liability over a short period of time; there is an increased risk of loss of virtual currency due to cyber attacks; virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC or SIPC protections; among others.
  
• Anti-money Laundering Compliance. As part of its anti-money laundering compliance program, each firm shall maintain the following information for all transactions involving the payment, receipt, exchange or conversion, purchase, sale, transfer, or transmission of Virtual Currency: (1) the identity and physical addresses of the parties involved; (2) the amount or value of the transaction, including in what denomination purchased, sold, or transferred, and the method of payment; (3) the date the transaction was initiated and completed, and (4) a description of the transaction. 
  

o   Verification of Accountholders. Firms must, at a minimum, when opening accounts for customers, verify their identity, to the extent reasonable and practicable, maintain records of the information used to verify such identity, including name, physical address, and other identifying information, and check customers against the Specially Designated Nationals (“SDNs”) list maintained by the U.S. Treasury Department’s Office of Foreign Asset Control (“OFAC”). Enhanced due diligence may be required based on additional factors, such as for high-risk customers, high-volume accounts, or accounts on which a suspicious activity report has been filed. Firms are also subject to enhanced due diligence requirements for accounts involving foreign entities and a prohibition on accounts with foreign shell entities.

o   Reporting of Suspected Fraud and Illicit Activity.Each Licensee shall monitor for transactions that might signify money laundering, tax evasion, or other illegal or criminal activity and notify the Department, in a manner prescribed by the superintendent, immediately upon detection of such a transactions. When a Licensee is involved in a transaction or series of transactions for the receipt, exchange or conversion, purchase, sale, transfer, or transmission of Virtual Currency, in an aggregate amount exceeding the United States dollar value of $10,000 in one day, by one Person, the Licensee shall also notify the Department, in a manner prescribed by the superintendent, within 24 hours. In meeting its reporting requirements Licensees must utilize an approved methodology when calculating the value of Virtual Currency in Fiat Currency. 

• Cyber Security Program: Each licensee must maintain a cyber security program designed to perform a set of core functions, including: identifying internal and external cyber risks; protecting systems from unauthorized access or malicious acts; detecting systems intrusions and data breaches; and responding and recovering from any breaches, disruptions, or unauthorized use of systems.  Among other safeguards, each firm shall also conduct penetration testing of its electronic systems, at least annually, and vulnerability assessment of those systems, at least quarterly.

• Chief Information Security Officer. Each Licensee shall designate a qualified employee to serve as the Licensee’s Chief Information Security Officer (“CISO”) responsible for overseeing and implementing the Licensee’s cyber security program and enforcing its cyber security policy.

• Independent DFS Examinations: Examinations of licensees will be conducted whenever the superintendent deems necessary – but no less than once every two calendar years – to determine the licensee’s financial condition, safety and soundness, management policies, and compliance with laws and regulations.
  
  
• Books and Records: Licensees are required to keep certain books and records, including transaction information, bank statements, records or minutes of the board of directors or governing body, records demonstrating compliance with applicable laws including customer identification documents, and documentation related to investigations of consumer complaints.
  
  
• Reports and Financial Disclosures, Audit Requirements. Each firm must submit to DFS quarterly financial statements within 45 days following the close of the Licensee’s fiscal quarter. Each firm must also submit audited annual financial statements, prepared in accordance with generally accepted accounting principles, together with an opinion of an independent certified public accountant and an evaluation by such accountant of the accounting procedures and internal controls of the firm within 120 days of its fiscal year end.
  
  
• Capital Requirements: Necessary capital requirements will be determined by DFS based on a variety of factors, including the composition of the licensee’s total assets and liabilities, whether the licensee is already licensed or regulated by DFS, the amount of leverage used by the firm, the liquidity position of the firm, and extent to which additional financial protection is provided for customers. 
  
  
• Compliance Officer. Each Licensee shall designate a qualified individual or individuals responsible for coordinating and monitoring compliance with NYDFS’ BitLicense regulatory framework and all other applicable federal and state laws, rules, and regulations. 

• Business Continuity and Disaster Recovery. Each Licensee shall establish and maintain a written business continuity and disaster recovery plan reasonably designed to ensure the availability and functionality of the Licensee’s services in the event of an emergency or other disruption to the Licensee’s normal business activities.

• Notification of Emergencies or Disruptions. Each firm must promptly notify DFS of any emergency or other disruption to its operations that may affect its ability to fulfill regulatory obligations or that may have a significant adverse effect on the Licensee, its counterparties, or the market.

• Transitional Period. Applications for the license will be accepted beginning on the date the proposed regulations become effective. Those already engaged in virtual currency business activity will have a 45-day transitional period to apply for a license from the date regulations become effective. The superintendent will issue or deny the license within 90 days of a complete application submission.

In August 2013, DFS announced its inquiry into the appropriate regulatory guidelines for virtual currencies. As part of an ongoing fact-finding effort informing that inquiry, the Department held public hearings in January 2014. In March 2014, the Department issued apublic order announcing it will be considering formal proposals and applications for the establishment of regulated virtual currency exchanges operating in New York.

To view a copy of the proposed DFS BitLicense framework, please visit, link. Only comments formally submitted pursuant to the SAPA process will be considered in connection with the promulgation of the proposed regulations.

Join the conversation about this story »

The US financial crimes agency has published a new analysis covering positive and negative aspects of bitcoin.

The company specialises in enabling third parties to deliver online training courses and has now started accepting bitcoin payments.

So many coins are launching every month, but which coins are actually noteworthy?  Which ones are pump and dump scams?  Which ones should I invest in? These are just some of the questions people ask themselves when they look at the altcoin market for the first time.  I’ve decided to start writing a “Coin of […]

The post Unobtanium – The Coin of the Day appeared first on CryptoCoinsNews.

A World Bank policy research working paper on Ponzi schemes mentions bitcoin as a market-driven bubble.

CEO Jeff Klee speaks to CoinDesk about the company's bitcoin sales success, the arrival of Expedia, and more.

I’m in love with a Bitcoin girl… da da da da da…  God that’s catchy!  I’m sure we’ve all seen the new Bitcoin Girl music video.  CCN’s own Naomi Brockwell stars as the Bitcoin Girl and now she’s reaching out to our readers to tell us a bit about why the video was created. Interview […]

The post Bitcoin Girl Video – A Behind the Scenes Look appeared first on CryptoCoinsNews.

erzlich Willkommen zum Wochenrückblick der Kalenderwoche 28. Auch die letzte Woche war wieder sehr ereignisreich: Mintpal wurde gehackt, die Regierung von Frankreich hat sich mit der Regulierung der virtuellen Währungen befasst und Coinfloor begrüßt einen alten Bekannten im Vorstand. Diese Themen und mehr möchte ich im Nachfolgenden kurz zusammenfassen.     Coinfloor: Adam Knight verstärkt […]

The post Bitcoin: Der Wochenrückblick / Teil VII appeared first on CryptoCoinsNews.

I have North America’s first official pictures of the Bitmain Antminer S3. Scott of HolyBitcoin was the first customer to receive his S3 today.  For him, it is exciting to be the first to have new miners in hand and Scott did not let me down: He sent me lots of pics to share with you all.  For […]

The post First Exclusive Look At The Bitmain Antminer S3 appeared first on CryptoCoinsNews.